Major Tax Break for Retired Veterans

Rep. Hampton, Tariffville Veteran Support Plan to Provide a Major Tax Break for Retired Veterans

For immediate release from Joe Gresko
A plan to provide a major tax break for retired veterans has the support of State Representative John K. Hampton (D-Simsbury). The bill would provide a 100 percent exemption from the state income tax for federally taxable military retirement pay. Current law in Connecticut provides for a 50 percent exemption of federal retirement pay to retired members of the U.S. Army, Navy, Air Force, Marines, Coast Guard, and Army and Air National Guard.

“Our neighboring states fully exempt military retirement pay from state income taxes,” said Rep. Hampton. “So should Connecticut. It’s the right and honorable thing to do. We want to keep these veterans and their accumulated knowledge and experience at home.”

Many other states already offer such an exemption. Of the states with an income tax (nine have none), 13 now offer a 100 percent exemption for military retirement pay, including Massachusetts and New York. The federal government currently exempts portions, and in some cases all, of military retirement pay for disabled veterans from the federal income tax.

Tariffville resident Jason Lill has been a vocal proponent of the legislation, offering compelling testimony at the February 17th Veterans Affairs Committee Public Hearing.

Mr. Lill retired from Active Duty Title 32 this past October after 25 years in the Army National Guard and 20 of those years in the Connecticut Army National Guard. He reached the rank of Chief Warrant Officer 4 as a C-12 Senior Instructor Pilot deploying to Afghanistan, Middle East and many other locations in South and Central America.

“I thank Jason for his vigorous advocacy on behalf of this critical issue. We owe him and all of our veterans an enormous debt of gratitude. This exemption will pay tribute to these brave men and women and provide them meaningful financial relief upon their well-earned retirement,” added Hampton.

This existing Connecticut exemption benefits approximately 11,000 Connecticut veteran taxpayers each year, resulting in $3.9 million in foregone revenue in fiscal year 2014 and $4 million in fiscal year 2015. Increasing the exemption to one hundred percent would roughly double those figures.

Rep. Hampton is in his second term serving the 16th House District in Simsbury

Have a news tip? Email Bill Maune. You can also post your own news, events and announcements on Patchby following these directions. Curious about how our new commenting platform, Disqus, works? Learn more about it here and start interacting with your neighbors on Patch.